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AMD Is Skipping Flagship GPUs For Its Next Generation - Report

AMD is aiming more for mid-range and budget consumers with its RX-8000 series of consumer GPUs, as it pushes for scale over bragging rights.

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AMD is reportedly stepping back from directly competing with Nvidia in the pursuit of the flagship consumer GPU. As the company continues on its quest to gain more market share overall, it believes that scale is the answer and not having the outright fastest card on the market.

That's according to Jack Huynh, AMD's senior vice president, who spoke with Tom's Hardware at IFA 2024. With rumors regarding the upcoming RX-8000 series of AMD GPUs potentially dropping flagship models (which AMD hasn't officially confirmed), Huynh was pressed to comment on the company's long-term strategy for consumers and how it might differ to that of Nvidia. The answer seems to be something similar to what AMD attempted five years ago--surrendering the flagship fight to Nvidia while attempting to gain market share where most consumers are spending their money: in mid- to budget-ranged GPU offerings.

"...But my priority right now is to build scale for AMD", replied Huynh, in response to being asked if AMD would not pursue a flagship GPU. "Because without scale right now, I can't get the developers. If I tell developers, 'I'm just going for 10% of the market share,' they just say, 'Jack, I wish you well, but we have to go with Nvidia.' So, I have to show them a plan that says, 'Hey, we can get to 40% market share with this strategy.' Then they say, 'I'm with you now, Jack. Now I’ll optimize on AMD.' Once we get that, then we can go after the top."

Earlier in the interview, Huynh referenced AMD's partnership with both Sony and Microsoft with regards to powering both the PlayStation 5 and Xbox Series X consoles, citing it as an example of how lower-cost products can yield the market share figures it is pursuing. Nvidia currently supplies its Tegra ARM-based SoC to Nintendo for the Nintendo Switch, but has not featured in a Microsoft or Sony manufactured console yet.

"We have this debate quite a bit at AMD, right? So the question I ask is, the PlayStation 5, do you think that’s hurting us? It’s $499. So, I ask, is it fun to go King of the Hill? Again, I'm looking for scale. Because when we get scale, then I bring developers with us," concluded Huynh.

It's too early to conclude if this means AMD already has new consoles from both Microsoft and Sony on its long-term roadmap, but it does seem more certain that RX-8000 series GPUs, expected later this year, won't attempt to go blow-for-blow with Nvidia's own upcoming RTX-50 series. AMD is committed to scale, however, which will continue with its mid-range and budget offerings, as well as the continued sale of PS5 and Xbox Series consoles. Its also making a name for itself in the blossoming portable PC market, with the company's next-generation Z2 Extreme chip expected in 2025.

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s1taz4a3l

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This is just amd admitting that the next 50x series will blow them away in such fashion they would end up with all their stock of GPUs. Even the 4080 super leaves AMD so far behind and with less issues by running everything on day one.

So what market share is AMD aiming now, everyone that had a rtx1080? Nowadays everything is aimed at 16gb vram, space marine 2 uses 12+-gb at 2k everything max.

Lets see the poor fools that will buy a mid tier AMD and fail to launch GTA VI next year, potato mode gta :D

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GuitarWarrior66

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AMD GPU's are always for poor people, despite the company aims for it or not. Even back then when AMD GPU's called "ATI", they were all for "cheap and good enough" GPUs that stops working in a few years while Nvidia is for rich people and their GPU's are always insanely durable. No Nvidia GPU I had ever stopped working but all the ATI and AMD GPU's died in like 3 years. So what changed is AMD finally realized what AMD GPU's are for customers after 2 decades ayy lmao.

This is a problem of strategic goals stubbornly followed by the company only on paper that make the company believe they are doing what's right for they stick to plan without caring about what customers says about the company and their product which when customers say something "negative" company ignores such comments as "hater or shill comment". This prevent the company from learning their place and what kind of company they are in reality. If they had cared they would realize people who have money to buy Nvidia won't touch AMD. Owning Nvidia GPU is a sign of being rich and "you are gamer bruh" for decades. It's good for AMD to finally learn what's their place and act according to it. Another thing they should realize is their hardware and drivers sucks AF so they should work on that. This causes even poor people to stop playing video games for 5 years enough to save money for Nvidia because they cannot afford to change GPUs every few years. AMD thinks "people change GPUs in every few years anyway" for they believe everyone is hardcore gamer who is rich AF when in reality people buy a PC and use it at least for a decade, they change GPUs at least in every 5 years for many reason from not being so "hardcore" gamer to they don't prefer to spend money for such stuff. That's why AMD always never cares their GPU can still work after 3 years. If a hardware issue won't kill your AMD GPU a driver will kill it for sure lol.

For example Sony making the same mistake as AMD does too on not caring their place and what customers think about them. Sony started to release their games on PC without researching how PC video gaming industry is. As a result they started to force people to login to their system that you can play their game only if you can login to their system which this system is not supported on over 100 countries, preventing most part of the world cannot play their games. It means Sony, despite trying to be an international country has no care to use their international potential by basically not having public relations department because if they had they wouldn't make such business suicide move. They limit money making aspect of their services to america, some European countries and Asia like rest of the world doesn't play a game. Now I learned about this login BS naturally I don't wanna buy any Sony game and any Playstation anymore because imagine I spend so much money on Playstation 5 but I cannot play it because I cannot login their services. No wonder Concord failed too ayy lmao. Probably people bought it but couldn't login to the game lol. Well AMD clearly had no public relations department but this articles show they started to care about public relations at least so they finally realize how they are 2 decades late lol. Next is Sony to realize what kind of BS they doing.

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jenovaschilld

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....But my priority right now is to build scale for AMD", replied Huynh, in response to being asked if AMD would not pursue a flagship GPU. "Because without scale right now, I can't get the developers. If I tell developers, 'I'm just going for 10% of the market share,' they just say, 'Jack, I wish you well, but we have to go with Nvidia.' So, I have to show them a plan that says, 'Hey, we can get to 40% market share with this strategy.' Then they say, 'I'm with you now, Jack. Now I’ll optimize on AMD.' Once we get that, then we can go after the top."

"We have this debate quite a bit at AMD, right? So the question I ask is, the PlayStation 5, do you think that’s hurting us? It’s $499. So, I ask, is it fun to go King of the Hill? Again, I'm looking for scale. Because when we get scale, then I bring developers with us," concluded Huynh...

This does not mean anything, until actual specs and skus come out. Does it mean we are not competing for the 'most' powerful card, most production run, smallest nm size, biggest production per wafer.... It is word salad of an answer that you could read anything into it that you want. The only thing he makes clear is intent to sale as much as possible.... like that is new thing in the corporate world.

I predict another generation like this one, a play it safe by both sides, as AI is on the back of everyone's mind. And like any prediction, it's accuracy is about as much as anyone else's.

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Tiwill44

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I was going to buy Nvidia anyway, but... that seems bad, giving them the win for free like that.

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squishytia

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@Tiwill44 said:

I was going to buy Nvidia anyway, but... that seems bad, giving them the win for free like that.

If they handle this correctly, they could skewer nVidia at the low and mid tiers. nVidia has been doling out some truly craptastic low/midrange GPUs this generation with crippled performance due to low VRAM and supremely cut down memory bus widths. AMD has typically has far better raw raster performance at the same tier than nVidia. Where nVidia has a win is in the ray tracing arena. AMD's ray tracing feels just as awful as nVidia's first gen RT.

Where AMD shines is in its use of wider memory buses, and smarter, if less efficient (energy wise) designs. I hope they continue to at least try for tying for second place like they did with the 7900XTX. That card easily trades blows with a 4080 Super and is only about 20% slower than a 4090 overall (not factoring ray tracing, which is where AMD gets curbstomped).

And right now nVidia has a serious problem with its drivers. The 55x series is abysmally unstable for almost all of their GPUs. The 56x series seem to have improved on that, but only marginally. And nVidia has done something many players are balking at: they flat out eliminated their beta/archive drivers for modern GPUs, leaving players with only the most recent ones to download, which leaves them with pretty headache inducing stability issues. I've got a Strix 4090 and the most stable driver I've had with it so far is the 531 studio driver. Anything past 542 is a tech support black hole, and tech suppor it what I excel at, which should tell you just how awful nVidia's performance is right now. AMD has much better driver support currently and if they can continue to keep that up with the next generation and they target GPUs the masses can afford, it could end up undercutting nVidia and forcing them to either make better low/mid tier GPUs or cut their losses and fire sale the lot like they've been doing with the 4060 and non Ti 4070 series (nVidia just brought out a "new" 4070 with slower GDDR6 vs. the original GDDR6X VRAM and kept the same name for instance).

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